Patna Approves Freehold Conversion of 3,631 Properties, Owners to Pay Up to 12% Fee
Patna, August 28, 2026: Patna Municipal Corporation (PMC) has approved the conversion of 3,631 leasehold properties into freehold properties, potentially making ownership and future property transfers easier for thousands of owners across the city.
The proposal was approved by a majority during the PMC council's sixth special meeting. However, the decision will become applicable only after approval from the state government Cabinet.
Which Properties Are Covered?
The properties include plots, houses, flats, offices, shops, stalls and kiosks allotted on lease by the civic body.
Major locations covered include Rajendra Nagar, Sri Krishnapuri, Kankarbagh, PIT Colony, Maurya Lok, Transport Nagar and Beur.
Rajendra Nagar alone accounts for 2,105 leasehold properties, including 780 plots, 432 buildings, 725 flats and 168 shops or kiosks.
How Much Will Owners Have to Pay?
The PMC has proposed conversion charges based on the property's market value:
- Original allottees: 10% of the property's market value
- Second allottees: 12% of the property's market value
The charges will apply when eligible leasehold properties are converted to freehold status.
Why Freehold Status Matters for Property Owners
Freehold ownership generally provides greater clarity over property rights and can make future sale, transfer and ownership documentation more straightforward.
For long-term owners of these properties, the conversion could also help resolve uncertainty associated with older leasehold arrangements and improve the marketability of eligible properties.
PMC Also Discusses Commercial Use of Homes
The council also discussed action against non-residential activities being carried out in residential properties, following a Supreme Court order.
Councillors raised concerns about the ongoing action, while officials were directed to proceed according to applicable rules and the court's directions.
What Happens Next?
The freehold conversion proposal will now require state Cabinet approval before it becomes applicable. Once approved, eligible property owners will be able to proceed under the prescribed conversion process and pay the applicable charges.
Grihik Takeaway: The move could be significant for thousands of Patna property owners holding older leasehold assets. Freehold conversion may provide greater ownership clarity and make future property transactions easier, but owners should wait for the government's final approval and detailed implementation rules before taking action.